Saving for Education

What is the best way to save for our children’s education?

Fortunately, over the past few years Congress has recognized that the cost of education has escalated and taxpayers need tax relief in order to adequately prepare for the financial realities of educating their children and grandchildren. But, as a result, the variety of options may confuse taxpayers who want to maximize their tax benefits while preparing for future education needs. Moreover, investment options and strategies can create added challenges and financial aid implications can be problematic. It is important that each parent (or grandparent) planning for their children’s education understands the various options in order to select the savings plan(s) most appropriate to their needs.

The following information gives the reader a quick overview of the various savings options and well as outlining other tax advantages and financial aid considerations.